Crude Markets Steady, Diesel Cracks Fall After EIA US Inventory Data

Crude markets bounce back after an initial reaction lower following a larger than expected build in EIA US crude weekly inventories. Diesel crack spreads fall back from earlier gains after a drop in implied demand.

• The crude build was driven by a large fall in refinery utilisation and despite higher exports with another large increase in the unaccounted oil adjustment. Cushing stocks were the highest since June 2021 after another build this week. The fall in refinery utilisation reflects outages in the week as well as the 240kbpd inclusion of the new Beaumont crude unit.
• Gasoline and distillates stocks built despite the lower refinery runs with gasoline output still up on the week however PADD 2 gasoline inventories fell 1.6mbbl to their lowest level ever recorded.
• Gasoline imports increased as suggested by the ship tracking data while implied demand edged lower on the week possibly due to the impact of wildfires keeping many indoor on the East Coast.
• A fall in distillates weekly implied demand offset an increase in exports and drop in production.
  • Brent AUG 23 up 0.7% at 74.81$/bbl
  • WTI JUL 23 up 0.7% at 69.9$/bbl
  • WTI-Brent down -0.05$/bbl at -4.76$/bbl
  • WTI JUL 23-AUG 23 unchanged at -0.16$/bbl
  • WTI DEC 23-DEC 24 up 0.12$/bbl at 3.15$/bbl
  • US gasoline crack up 0.5$/bbl at 37.85$/bbl
  • US ULSD crack up 0.1$/bbl at 31.28$/bbl